HemaSure Inc. Announces Three-Year Supply Contract With American Red Cross
Company to Provide r\LS Red Blood Cell Filtration System to One of the Largest Blood Collection Organizations in the United States
MARLBOROUGH, Mass., July 29 /PRNewswire/ -- HemaSure Inc. (OTC Bulletin Board: HMSR - news), a developer and supplier of blood filtration technologies, announced today that it has entered into a three-year supply contract for its r\LS Red Blood Cell Filtration System with the American Red Cross. The contract contains a minimum purchase requirement that could extend beyond the three-year term if the purchase requirement is not met. Responsible for nearly half of all blood donated in the United States, the Red Cross collects, processes, tests and distributes approximately 6 million units annually from more than 4.5 million donors. Currently, the Red Cross filters approximately 1.5 million units of blood and anticipates that by the end of the year 2000, it will filter most, if not all, of its annual collections.
''We believe the conversion to a 100 percent leukocyte-reduced blood supply will benefit many patients, particularly those in need of repeated transfusions, cancer treatment or major operations,'' said Brian McDonough, chief operating officer of the American Red Cross Blood Services. ''As a step toward protecting the safety of the nation's blood supply, we are pleased to work with HemaSure as we strive to achieve 100 percent leukocyte reduction.''
The Red Cross contract comes at a time when the movement towards universal leukoreduction of the world's blood supply is growing at a rapid pace. In North America and Europe, numerous countries are either currently providing 100 percent leukoreduced blood components, committed to providing 100 percent leukoreduced blood components, or have received recommendations to provide 100 percent leukoreduced blood components. In September of 1998, the U.S. Food and Drug Administration's Blood Products Advisory Committee, which makes recommendations to the FDA but does not set policies for the agency, recommended that the United States adopt a 100 percent leukoreduced donated blood supply. The committee also recently identified pre-storage filtration, the method in which HemaSure's r\LS filter would be used, as the preferred method of leukoreduction. Further, studies on patients recovering from open heart, heart bypass and gastrointestinal surgery demonstrated the benefits of leukoreduction with improved outcomes, decreased hospital stays and reduced patient costs.
''This supply contract with the American Red Cross represents the culmination of more than two years of hard work in rebuilding our company and demonstrates both the strength of our technology and the acceptance of the product in the marketplace,'' stated HemaSure president and chief executive officer Jack McGuire. ''With the signing of this contract, and the recent 510(k) clearance for our r\LS Red Blood Cell Filtration System, HemaSure has entered a new era. We believe we now have the industry's best alternative for leukoreducing red blood cells, and are aggressively pursuing an increasing share of the growing global market for leukoreduced blood products.''
Continued McGuire, ''The r\LS System was developed to meet the specific needs of leukoreduction for blood centers worldwide. It is the first product developed with the Red Cross's input under our five-year strategic alliance with this respected humanitarian organization, which was finalized in August 1998. The strategic alliance agreement with the Red Cross allows HemaSure and the Red Cross to co-develop enhanced versions of the Company's existing leukoreduction filters, as well as to collaborate on other filtration opportunities. This agreement focuses on HemaSure's filtration technology strengths and provides for critical customer input on product design. We will continue to develop new products based on our core filtration technology and provide the Red Cross and all other blood centers with high-quality, cost- effective leukoreduction products.''
On June 1, 1999, HemaSure announced that it had received 510(k) clearance from the U.S. Food and Drug Administration to market its r\LS Red Blood Cell Filtration System in the United States. The r\LS reduces leukocytes in donated blood to trace levels. Leukocytes can carry dangerous viruses and cause adverse reactions in blood transfusion patients.
''During the past 18 months, our strategy has been to focus on the commercialization of the r\LS. This supply contract with the Red Cross, coupled with the ongoing trial evaluations the Company already has made in Europe, illustrates the success of that strategy. We will now focus on growing sales of the r\LS both in the United States and internationally, which we expect will ultimately bring HemaSure to profitability,'' concluded McGuire.
HemaSure's direct sales force will distribute products to the Red Cross. In May 1999, HemaSure amended its exclusive Distribution Agreement with COBE BCT, Inc., which expands the territory in which COBE will distribute the Company's products to all customers worldwide, excluding the American Red Cross. In addition, the agreement provides for joint efforts related to the defense of HemaSure's products against intellectual property claims made by third parties. As in the original agreement, there is a provision allowing for the development of additional HemaSure products to be incorporated by COBE into that company's automated blood component equipment. Also in May 1999, HemaSure obtained a $9 million private placement financing with COBE, which provides COBE with an option to purchase an additional $3 million of HemaSure common stock.
HemaSure Inc., based in Marlborough, Mass., develops and delivers innovative filtration technologies designed to help meet today's increasing demand for a safer, more reliable blood supply. The Company's blood filtration technologies are designed to reduce virus-carrying leukocytes in donated blood to trace levels.
The American Red Cross is the largest supplier of blood, plasma and tissue products in the United States. The Red Cross supplies almost half of the nation's blood supply by working with more than 4.5 million donors and 3,000 hospitals through its national network of 37 blood regions. In addition, the Red Cross supplies one quarter of the nation's tissue for transplantation through its network of 15 tissue centers nationwide.
Any statements contained herein that are not historical facts are forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. Potential factors could cause actual results to differ materially from those expressed or implied by such statements. These statements include, but are not limited to, those relating to the Company's product development and distribution agreement with COBE BCT, Inc., the supply agreement and strategic alliance with the American Red Cross, the Company's profitability, sales of the Company's r\LS System in the United States and internationally, and related regulatory approvals. Information on the potential factors that could affect the Company's actual results of operations are included in its filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-k for the fiscal year ended December 31, 1998.
SOURCE: HemaSure Inc.
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WE MADE IT BACK!!! Hope you're still in this thing. I believe it could easily get back over $10 just on this news plus a coupla good quarters of revenue growth.
Hopefully they will get back on NASDAQ now that the stock price seems to have stabilized over the $5 mark. Today's action was nothing more than the typical knee-jerk "sell-on-the-news" mentality that pervades the small-cap stocks.
Surprised there's not more Hemasure fans in this joint. |
